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Nina Bandelj, From Communists to Foreign Capitalists: The Social Foundations of Foreign Direct Investment in Postsocialist Europe.

Publication: Labour/Le Travail
Publication Date: 22-SEP-08
Format: Online
Delivery: Immediate Online Access
Full Article Title: Nina Bandelj, From Communists to Foreign Capitalists: The Social Foundations of Foreign Direct Investment in Postsocialist Europe.(Book review)

Article Excerpt
Nina Bandelj, From Communists to Foreign Capitalists: The Social Foundations of Foreign Direct Investment in Postsocialist Europe (Princeton: Princeton University Press 2008)

THE END OF THE 20TH century witnessed two parallel historical transformations: the fall of communism in Central and Eastern Europe and an unprecedented rise in global capital mobility. The intersection of these historic shifts provides the empirical setting for Bandelj's important comparative study of the factors that shaped patterns of foreign direct investment (FDI) in the postsocialist region during the 1990s. Which countries were more successful in attracting foreign investment and why? What does this case tell us about processes of capital mobility in a global economy?

Bandelj begins with a state-of-the-art review of economic sociology, and brings this literature to bear on the novel question of foreign investment in the postsocialist region. From this literature, Bandelj derives a set of testable hypotheses about why patterns of foreign investment are unlikely to follow neoclassical rules of economic exchange. Though at times she oversimplifies what she calls instrumentalist theories of market processes, she nevertheless presents a cogent and...

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